In a major relief for Byju’s, the embattled edtech firm on April 15 said that the vote to increase its authorised share capital has been approved by a majority, as per an independent scrutiniser's report.
This comes even as the National Company Law Tribunal (NCLT) has prohibited the edtech company from using the proceeds from the rights issue. The NCLT directed the edtech company to keep funds received from the rights issue in an escrow account till the disposal of the oppression and mismanagement plea filed by four of the company's investors.
In a statement, the company said that the voting process, which included both the EGM and a postal ballot that concluded on April 6, 2024, has been duly scrutinised by an independent third party.
“We are grateful to our investors for their support and understanding during this pivotal phase. Their invaluable support in providing essential working capital underscores their collective commitment to our renewed growth push,” said Byju Raveendran, founder and CEO of Byju's.
“The shareholder approval marks a significant threshold in our relentless push to turn around the business beset with multiple challenges, which we are resolving one by one, slowly but surely,” he added.
Meanwhile, the next hearing on the investors plea is scheduled for April 23.
This development comes hours after Arjun Mohan stepped down to pursue other opportunities as the business has reduced and Byju Raveendran will now return at the helm after a gap of four years.
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